SINGAPORE: The Monetary Authority of Singapore (MAS) on Tuesday (Apr 14) tightened monetary policy and increased its inflation forecast as the Middle East conflict causes volatility in energy prices and supply.
The central bank said in its April monetary policy statement that it would “increase slightly” the rate of appreciation of the Singapore dollar nominal effective exchange rate (S$NEER) policy band.
There will be no change to its width and the level at which it is centred.
“MAS is in an appropriate position to respond effectively to any risk to medium-term price stability and will continue to closely monitor economic developments amid uncertainties in the external environment,” the central bank said, adding that it stands ready to curb excessive volatility in the S$NEER.
